Gammon Production Increases 10%; Expects to Achieve Production Guidance

Gammon Gold Inc.

provides preliminary third quarter results for its Ocampo mine where production increased by 10% over the prior quarterly production result. All figures reported are in U.S. dollars unless otherwise indicated. The benefits of the strategic capital program completed over the past two years are evident in the quarter over quarter improvements reported at the Ocampo mine. Despite heavy seasonal rainfalls in the third quarter, the mine reported increased productivity and reduced cash costs as the capital program and the strong operating team has mitigated the impact on mining operations. Based on the positive momentum achieved at Ocampo, the Company confirms that it expects to achieve its production and cash cost guidance for 2010.